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StarHub Launches IPO Of 481.8 Million Shares At Maximum Offering Price Of S$1.15 Each

Singapore,
17 September 2004 –StarHub
Ltd (“StarHub”) announced today its initial public offering (“IPO”
or “Offering”) of481.8 million shares (the "Shares") at a Maximum
Offering Price of S$1.15 each, in conjunction with its proposed
listing on the Main Board of Singapore Exchange Securities Trading Limited.

The
Offering consists of an international placement to investors,
including institutional and other investors in Singapore, as well as
an offering to the public in Singapore (the “Public Offer”) which
includes an offering of up to 16.8 million Reserved Shares.

The Shares represent 22.8% of
StarHub’s issued share capital and are being offered by certain of
StarHub’s current shareholders. NTT
Investment Singapore Pte. Ltd. is offering81.9 millionShares; MediaCorp Pte. Ltd. is
offering0.8 millionShares; BT (Netherlands) Holdings
B.V. is offering228.7millionShares; and Singapore Press Holdings
Limited is offering170.4
millionShares. As all the Shares are being offered by its
shareholders, StarHub will not receive any of the proceeds from the IPO.

In connection with
the Offering, the Joint Global Co-ordinators of the Offering will be
granted an over-allotment option by the shareholders of up to an
additional 15% of the Shares offered in the IPO.

Credit Suisse First Boston
(Singapore) Limited and UBS AG, acting through its business group,
UBS Investment Bank are the Joint Global Co-ordinators, Bookrunners
and Lead Managers for the Offering. UOB Asia
Limited is the Joint Lead Manager of the Public Offer and the
sub-underwriterscomprise
CLSA Singapore Pte Limited,
DBSBank Ltd, Nomura Singapore
Limited, Oversea-Chinese Banking Corporation Limited and The
Hongkong and Shanghai Banking Corporation Limited.

Corporate Profile

StarHub
is a Singapore-based integrated information, communications and
entertainment company, providing a broad range of mobile, cable TV,
broadband and fixed network services. As at
June 2004, StarHub provided at least one service to approximately
75% of households[1] in Singapore and approximately
27,000 businesses.

StarHub
also operates three networks: an island-wide GSM 1800 network that
is fully upgraded for GPRS service, a two-way hybrid fibre-coaxial
network that reaches over 99% of the homes in Singapore and a high
capacity fibre-optic network which directly connects over 800
commercial buildings with wide coverage across the Singapore central
business district.

Hubbing
Strategy – Key Growth Driver

StarHub’s key differentiation from
its competitors is its Hubbing strategy, which it believes is a key
driver of customer growth and retention.
Being the only fully integrated telecommunications and cable service
operator in Singapore has allowed StarHub to be a “one-stop shop”
for convergent and bundled products and services for both consumer
and business customers.

In
addition, Hubbing allows StarHub to realise multiple revenue streams
from single customer accounts and a suite of service offerings. As a
result, StarHub believes it is generating greater customer loyalty,
lower churn, cost efficiencies and stronger brand equity.

Hubbing Metrics

StarHub
has achieved rapid customer and revenue growth in its relatively
short history, as a result of the success of its management in
executing its strategy.

The
total number of households with at least one StarHub service
(post-paid mobile, cable TV and/or broadband services) grew from
572,000 as at 31 December 2002 to 659,000 homes as at 30 June
2004.Over
the same period, the percentage of total
households which subscribe to any two StarHub services grew from
25.5% to 29.5% while the percentage of total households with three
services increased from 5.0% to 9.5%.

StarHub’s Milestones

Another key driver
of StarHub’s growth is its consistent differentiation through
products and service innovation. Since its launch in April 2000,
StarHub has achieved several key milestones, including:

Mobile

First in
Singapore to introduce mobile offerings such as “airtime
rollover”, “per second billing”, “free incoming calls”, “free
IDD calls” (priced as local mobile calls) to selected countries
and the conversion of free SMS to MMS

First operator
in Singapore to provide the BlackBerry service

Recorded a
CAGR of 37.9% in mobile customer base between 2001 and 2003
while the overall Singapore mobile market grew at a CAGR of
10.3% over the same period

Fastest-growing
mobile operator in Singapore since its launch, with high ARPU
compared to its local competitors in Singapore, for the quarter
ended 31 December 2003. For the three months ended 30 June 2004,
its pre-paid ARPU remained higher than that of its competitors
and its post-paid ARPU of S$72 was higher than MobileOne and
slightly below SingTel’s post-paid ARPU of S$73

Fastest growth
rate among youths and young adults in 15-29 years age band from
2001 to 2003

Greatest
beneficiary of growth in the pre-paid mobile market

Non-voice
services usage has grown rapidly to 15.2% of blended ARPU as at
30 June 2004

Acquired its
one millionth customer in June 2004

Cable TV

Launched
digital cable service at the end of May 2004 to increase channel
capacity to 130 channels and provide other new features such as
Pay-Per-View and Electronic Programme Guide

As at 30 June
2004, StarHub had 393,000 residential cable TV customers and
1,800 business customers

Internet
Access and Value-added Services

Offers the
highest download speed of 3Mbps available for residential
broadband Internet access in Singapore

StarHub
believes it provided the most extensive WiFi coverage in
Singapore for wireless broadband Internet access for the first
half of 2003. Global WiFi coverage is also provided through the
Wireless Broadband Alliance to over 20,000 wireless hotspots
worldwide, including 66 international airports as at the end of
December 2003

Launched a
pre-paid broadband Internet access plan, FlexiSurf, which was
the first of its kind in Singapore and among the first in the
Asia Pacific region

Fixed Network Services

As at 30 June
2004, 18,000 wholesale and business retail customers subscribed
to one or more fixed network services

Financial Highlights

S$’000

Year Ended 31
December

(Pro forma – Merged
Co.)

Six Months
Ended

30 June

2002

2003

% Change

2003

2004

% Change

Turnover

912

1,118

23

536

655

22

EBITDA

46

203

341

92

144

57

NPAT

before IDA
Compensation

(258)

(136)

47

(74)

(46)

38

IDA
Compensation

361

90

(75)

90

-

-

NPAT

after IDA
Compensation

103

(46)

(145)

17

(46)

(371)

In
2003, StarHub’s group revenue was S$1.1 billion. Between 2001 and 2003, revenue grew by a compound
annual growth rate of 19.9%. For the six
months ended 30 June 2004, its revenue was S$654.5 million,
representing an increase of 22.2% over the same period in 2003.

EBITDA

With
increases in customers and revenue across each of StarHub’s mobile,
cable TV, broadband and fixed network businesses, StarHub recorded
EBITDA of S$203.1 million in 2003, an increase of S$337.5 million
from negative S$134.4 million in 2001. For
the six months ended 30 June 2004, its EBITDA was S$143.6 million,
an increase of 56.3% over the same period in 2003. EBITDA margin was 21.9% for the first half of 2004
representing a 20.8% improvement as compared to 18.2% for the year
ended 31 December 2003.

Reduced
Loss from Operations

Excluding IDA compensation of S$360.7
million in 2002 and S$90.2 million recognised over the first three
months of 2003, StarHub reported a net loss of S$136.1 million in
2003 compared to a net loss of S$258.0 million in 2002. For the first half of 2004, its net loss was
S$45.5 million, a reduction of 38.2% compared with the same period
last year (excluding IDA compensation).

Further Information

The
date on which the offering price for each Share will be determined
(the “Price Determination Date”) is expected to be on Wednesday, 6
October 2004. The Public Offer and the
Placement in Singapore is expected to open at 9.00 a.m. on 21
September 2004 andclose at 12.00 noon
(in respect of the Public Offer) and 5.00 p.m. (in respect of the
Placement) on 5 October 2004. The
commencement of trading of StarHub’s
shares, in board lots of 1,000 shares each, is expected to
commence on a “when issued” basis on 13 October 2004.

Potential
investors are advised to refer to the Prospectus dated 17 September
2004 (the "Prospectus") for information on the Offering.
Any investment decision potential investors may make should be based
solely on the information set out in the Prospectus.

The Prospectus is available for
collection from anyUOB
branchin Singapore during
business hours, from 21 September 2004, 9.00 am to 5 October 2004,
12.00 noon. Anyone wishing to acquire the Offering Shares will need
to make an application in the manner set out in the Prospectus.

[1]Based on a telephone survey
StarHub commissioned and its internal billing records, this
refers to households in Singapore which use any of its mobile,
cable TV, broadband/dial-up Internet access, digital voice and
IDD services as a percentage of the total number of occupied
homes in Singapore.